Salary question

Original post by GPODT

I should probably know this but I don't as I have never really held down a regular job.

When an employee advertises a job with an annual salary of (for instance) £40,000 per year would I be correct in saying that you earn £40,000/52 = £769 per week which in turn is £769/5=£153 a day?

Thanks

Correct. However there will be deductions for tax, NI, pension etc

Reply 2

Yes, though if it's an annual salary you will probably be paid monthly. Plus that's before tax.

Reply 3

GPODT

OP

Original post by Reue

Correct. However there will be deductions for tax, NI, pension etc

Original post by Le Nombre

Yes, though if it's an annual salary you will probably be paid monthly. Plus that's before tax.

How much will be (roughly) deducted in total from the 40k amount?

Reply 4

Original post by GPODT

How much will be (roughly) deducted in total from the 40k amount?

Tax: £500.00

NI: £320.44

Pension: whatever you decide

Per month

Reply 5

GPODT

OP

Original post by Reue

Tax: £500.00

NI: £320.44

Pension: whatever you decide

Per month

That's about £820 a month which is £9840 a year meaning I am left with only about £30,000 :|? Maybe I should look into careers in Dubai or something.

Thanks though.

Reply 6

Simes

Original post by GPODT

When an employee advertises a job with an annual salary of (for instance) £40,000 per year would I be correct in saying that you earn £40,000/52 = £769 per week which in turn is £769/5=£153 a day?

Probably not. You need to read the unwritten words in the advert.

Most positions have a salary range. A common trick is to say £40k meaning "£32k to £40k" but new starters will only get the £32k.

Also, it may be a £40k package comprising £32k + benefits + pension. These "benefits" can include paid leave (a right), on-site canteen (which you pay for), share options (which you can't use), car or bike or season ticket (loans), moving expenses (which new starters don't get), health insurance (there's the NHS), training (mandatory Health & Safety and the like) and so on. The pension one can be quite significantly exaggerated so the £40k job pay be £32k at the top of the scale with new starters getting £26k.

If it is posted by a recruitment agency, they will also have probably added a bit to the package to make it more attractive to get people to apply.

So, do not be surprised to find a £40k job advert actually pays £24k salary.

Then deduct tax:

£40k = £2,512 per month or £116 per day take home pay.
£32k = £2,059 per month or £95 per day take home.

(edited 9 years ago)

Reply 7

Juichiro

18

Original post by Reue

Tax: £500.00

NI: £320.44

Pension: whatever you decide

Per month

How do you calculate those figures?

Reply 8

http://www.thesalarycalculator.co.uk/salary.php

Original post by Juichiro

How do you calculate those figures?

Reply 9

Original post by GPODT

That's about £820 a month which is £9840 a year meaning I am left with only about £30,000 :|? Maybe I should look into careers in Dubai or something.

Thanks though.

Maybe you should :wink:

Reply 10

User1674917

12

Original post by GPODT

That's about £820 a month which is £9840 a year meaning I am left with only about £30,000 :|? Maybe I should look into careers in Dubai or something.

Thanks though.

Dubai would be a good option but it tends to be more expensive in terms of living.

Reply 11

GPODT

OP

Original post by star80

Dubai would be a good option but it tends to be more expensive in terms of living.

The salary is tax-free, food is of a comparable price to London (if not cheaper) and I doubt a modest apartment would be more expensive than London so overall your money would go further.

Reply 12

Original post by GPODT

The salary is tax-free, food is of a comparable price to London (if not cheaper) and I doubt a modest apartment would be more expensive than London so overall your money would go further.

The expat lifestyle is steep though, and not living that is very difficult when you're out there. My mate's just come back and he's still up on staying in London because of the relocation package, but he spent the tax saving on nights out, taxis etc.

Plus you lose a lot of freedoms, like holding your girlfriend's hand outside.

Reply 13

User1674917

12

Original post by GPODT

The salary is tax-free, food is of a comparable price to London (if not cheaper) and I doubt a modest apartment would be more expensive than London so overall your money would go further.

thats true and you get weather :smile:

Reply 14

Simes

The AUE, eh. You'd better not mind cockroaches, if Abu Dhabi was anything to go by.

Edit: links:
http://www.thenational.ae/arts-culture/cockroaches-know-your-enemy
http://www.expatwoman.com/dubai/monthly_home_garden_Cockroaches_In_Dubai_9575.aspx

Original post by GPODT

The salary is tax-free

Don't you get taxed on it when you come back, unless you stay for a few years?

(edited 9 years ago)

Reply 15

kka25

18

Original post by Le Nombre

The expat lifestyle is steep though.

Care to elaborate more?

Reply 16

Original post by kka25

Care to elaborate more?

There's just a lot of going out, eating out, trips abroad to Thailand etc.

Obviously you don't have to partake in this, but given that most expats out there live like this, certainly most who aren't married with kids etc., and it's a small community opting out can lead to you being very lonely.

I think it's just that the City lifestyle becomes all encompassing. What I spend on an evening with work is very different to what I'd spend on an evening with my uni mates, as with uni mates you have to make sure everyone can afford it and some are aspiring comedians and the like. Out there though everyone's a banker, lawyer, accountant etc. so all your socialising comes with a hefty price tag.

Reply 17

kka25

18

Original post by Le Nombre

There's just a lot of going out, eating out, trips abroad to Thailand etc.

Obviously you don't have to partake in this, but given that most expats out there live like this, certainly most who aren't married with kids etc., and it's a small community opting out can lead to you being very lonely.

Being lonely in a foreign country can be daunting really, but since the objective is to make money (or enough money to have a good pension), I'd think it'd be worth it?

I'm not the party type really but I do understand why some people just go out and spend money for parties and such.

I'd guess this going out and socialising is quite hefty (financially) for him?

Reply 18